Senate Shelves Bankruptcy Conference Report; Efforts to Close Loopholes Will Have to Wait

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Efforts to Close Loopholes Will Have to Wait

Despite significant efforts by municipal leaders and members of the House and Senate, the hopes of bankruptcy reform died last week. House and Senate conferees on bankruptcy reform legislation reached agreement on a bill that would have contained most of the NLC-supported tax provisions and the Investment in Education Act, but efforts to gain final approval on the package stalled in the Senate.

At The Weekly's press time, the Senate had not yet voted to approve the conference report and send it to President Clinton.

The conference report, which was largely crafted by Sen. Charles Grassley (R-Iowa) and Rep. George Gekas (R-Penn.), contained the Investment in Education Act, secured the local statutory rate for unpaid ad valorem taxes, limited payment plans for ad valorem taxed to six years, and clarified notice to government provisions.

The House of Representatives favorably voted on the conference legislation in a 300-125 vote.

The Senate agreed to bring the conference report to the floor, but never got a chance to vote due to time constraints, political pressure to consider other bills, and a veto threat by President Clinton.

The Clinton Administration argued that the legislation did not provide enough consumer protections and was too stringent on creditors. The basis for bankruptcy reform legislation this year was to close 20 year old loopholes in the system that were being abused by bankruptcy filers. …